Economy

Sarita, Tommy, Mikayla, Shashank

In Brief

• 7%+ increase in growth

yearly since 1997• Diverse economy

– Farming– Handicrafts– Industries– Services

• Large part of population

includes English speakers

bringing technical support.• Corruption scandals

Globalization•Brought a lot of success

•Growth of outsourced IT and business process

•Increase in skilled professionals

•International companies expanding operations

•Companies entering Indian market opened up beneficial opportunities

•Expansion in steel, Bollywood, and cars

•Goods exported into far destinations

History• 1947-Independenced gained, allowing for economy to

flourish• Use of 5 year plans-focus on certain issues of economy

(agricultural, industrial, etc)• GDP in 1951-52: 2.3%, 2005-6: 9%• During their independence, had

a socialist economy, inspired by the Soviet Union

• ~1990- Prime Minister Narasimha Rao, Finance minister Dr. Manmohan – Reformed economy: globalization, privatization,

liberalization

History (cont.)

• Now the ~11th largest economy in the world

• 2nd largest average annual growth rate

• 4th largest in terms of purchase

• power

Effects of Weather changes on the Indian economy

• According to “Academia” there is no positive impact of climate change on economies (environmental, equity or ecology) anywhere in the world. Climate is dynamic. Then why we are worried about climate change. Because, natural climate change may took millions of years. But the ‘Climate change’ we are facing, the maximum change in last 420, 000 years, is an inevitable increase of 2 degree Celsius global temperature by 2050.

Impacts on Indian Agriculture–Literature

• Sinha and Swaminathan (1991) – showed that an increase of 2oC in temperature could decrease the rice yield by about 0.75 ton/ha in the high yield areas; and a 0.5oC increase in winter temperature would reduce wheat yield by 0.45 ton/ha.

• Rao and Sinha (1994) – showed that wheat yields could decrease between 28 to 68% without considering the CO2 fertilization effects; and would range between +4 to -34% after considering CO2 fertilization effects.

• Aggarwal and Sinha (1993) – using WTGROWS model showed that a 2oC temperature rise would decrease wheat yields in most places.

• Saseendran et al. (2000) – showed that for every one degree rise in temperature the decline in rice yield would be about 6%.

• Decrease in yield of crops as temperature increases in different parts of India - For example a a 2°C increase in mean air temperature, rice yields could decrease by about 0.75 ton/hectare in the high yield areas and by about 0.06 ton/hectare in the low yield coastal regions.

• Major impacts of climate change will be on rain fed crops (other than rice and wheat), which account for nearly 60% of cropland area. In India poorest farmers practice rain fed agriculture.

• The loss in farm-level net revenue will range between 9 and 25% for a temperature rise of 2-3.5°C .

• The loss in farm-level net revenue will range between 9 and 25% for a temperature rise of 2-3.5°C .

• The Indian Agricultural Research Institute (IARI) indicate the possibility of a loss of 4–5 million tonnes in annual wheat production with every 1 oC rise in temperature1 even after considering the carbon fertilization effect

• Poor farmers in India have already started to face crisis caused due to droughts. Over 1,500 farmers committed mass suicide in the State of Chattisgarh in 2009. Poor farmers who had to pay debt were further caught up by crop failure due to adverse monsoon effects. Reports show that such trends have been increasing and this indicates the worst conditions that many poor farmers have been facing.

Bibliography

• "Central Intelligence Agency." CIA. N.p., n.d. Web. 09 Oct. 2012. <https://www.cia.gov/library/publications/the-world-factbook/geos/in.html>.

• http://www.onemint.com/wp-content/uploads/2012/02/Q3-2011-GDP-Share-of-Various-Sectors.png

• http://static.guim.co.uk/sys-images/Users/Help/screenshots/2010/10/25/1288014227986/An-Indian-farming-family-006.jpg

• "Economy Watch - Follow The Money." Globalization In India. N.p., n.d. Web. 09 Oct. 2012. <http://www.economywatch.com/economy-articles/globalization-in-india.html>.

• http://www.mapsofindia.com/india-economy.html